Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Three months ago, Bank X issued an $ 80 million, one-year maturity CD denominated in euros. On the same date, $ 40 million was invested in a euro-denominated loan and $ 20 million in a U.S. T-bill. The exchange rate on this date was 0.77euros/$. Assume no repayment of principal and an exchange rate today of 0.74euros/$. What is the current value of the CD principal ? What is the current value of the euro-denominated loan principal (in euros and dollars) ? what is the current value of the U.S. T-bill (in euros and dollars ) ? What is the bank's profit/loss from this transaction?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941589

Have any Question? 


Related Questions in Basic Finance

1 winnebagel corp currently sells 28000 motor homes

1. Winnebagel Corp. currently sells 28,000 motor homes per year at $73,000 each and 7,000 luxury motor coaches per year at $115,000 each. The company wants to introduce a new portable camper to fill out its product line; ...

1 explain the rationale behind the t-test2 write the

1. Explain the rationale behind the t-test. 2. Write the formula for at-test. 3 Distinguish between one-tailed and two-tailed t-tests.

What is an efficient market why do efficient markets

What is an efficient market? Why do efficient markets benefit society? Define arbitrage and the law of one price. What role do they play in our market system? What do we call the "one price" of an asset? Suppose you are ...

1 iilustrate the relationship between the size and shape of

1. IIlustrate the relationship between the size and shape of a distribution warehouse and the materials handling system. Why do some warehouses have square design while others are rectangular? 2. Explain the following st ...

Suppose someone offers you the following gamble you pay 7

Suppose someone offers you the following gamble: You pay $7 and toss a coin. If the coin comes up heads, he pays you $10, and if tails comes up, he pays you $5. You in turn get the idea of offering another person a coin ...

1 what does it mean to say that a currency trades at a

1. What does it mean to say that a currency trades at a forward premium? 2. Explain how the law of one price establishes a relationship between changes in currency values and inflation rates. 3. Why does purchasing power ...

1 what do economists mean by a bubble why do many

1. What do economists mean by a "bubble"? Why do many economists believe that there was a housing bubble in the United States between 2000 and 2005? 2. By the 2000s, what significant changes had taken place in the mortga ...

In a random sample of 63 students in 2000 3 got first class

In a random sample of 63 students in 2000, 3 got first class honours. A random sample of 42 is conducted in 2009 and 7 got firsts. (a) Give a 95 percent confidence interval for the percentage who got firsts in 2000. (b) ...

All of us have a tendency to categorize people into

All of us have a tendency to categorize people into stereotypic groups. If you look around at the students on campus, you will see science geeks, artsy freaks, jocks, wallflowers, cheerleaders, and party animals, just to ...

Mass-transfer data were obtained for the vaporization of

Mass-transfer data were obtained for the vaporization of naphthalene into a turbulent gas stream flowing in an annulus. Both the inside rod and the outer pipe of the annular conduit were made of naphthalene. To correlate ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen